|
| |
| Hela Ben hassine khalladi |
| |
| ''Financial crises management by the International Monetary Fund: Was external and public debt sustainable ?'' |
| ( 2017, Vol. 37 No.1 ) |
| |
| |
| The main contribution of this paper is to analyze whether the absence of restructuring programs during some financial crisis episodes was justified. In other words, was the countries' debt sustainable, allowing an intervention through only an IMF bailout ?
Using a non- parametric methodology (Classification And Regression Tree or CART), the fiscal and the external solvency of countries facing financial troubles since the 80's was assessed.
It is found that, in some crisis episodes, like the one faced by Argentina in 1995, Brazil in 1999 and Turkey in 2001, a debt restructuring plan was necessary while the countries clearly exhibited solvency problems. This can explain the inefficiency of the IMF intervention during some crises.
|
| |
| |
| Keywords: Financial crises, external and public debt sustainability assessment, IMF |
JEL: F3 - International Finance: General
|
| |
| Manuscript Received : Dec 21 2016 | | Manuscript Accepted : Jan 17 2017 |
|
